Data Warehousing Implementation Success: The
Findings Using Different Research Methodologies
Hugh J. WatsonTerry College of BusinessUniversity of [email protected]://www.terry.uga.edu/~hwatson/implementation_success.ppt
Research on Data Warehousing Started in 1994 Has focused on implementation
issues and organizational benefits Has utilized a variety of research
methodologies
First American Corporation FAC -- A bank in trouble Enter a new management team A CRM strategy, Tailored Client
Solutions, was created
Client Informationknow the client
better than anyone
Consistent Servicehelp the clientachieve goals
Flexible Product Lineprovide what the
client needs
DistributionManagementoffer the client
preferred channels
The Client
“About life. About you.”
First American Corporation FAC -- A bank in trouble Enter a new management team A CRM strategy, Tailored Client
Solutions, was created A data warehouse called VISION was
developed to support the strategy
TransactionClient
Transactions
Products
Psychographics
Demographics
ClientInteractions
Measures
Teller TransactionsATM TransactionsPC Banking
LoansDepositsInvestments
NameOccupationHead of Household
Buying PreferencesFinancial SegmentsLifestyle Groups
BalancesFeesProfitability
Marketing CampaignsCustomer CallsMailer Responses
First American Corporation
Applications using VISION were developed for every component of TCS
Applications for Every Component of the Strategy Client Information: Customer
Preferences and Profiles Flexible Product Line: Profitability
Analysis for Seniors Accounts Consistent Service: Contact
Management System Distribution Management:
Distribution Management System
First American Corporation External talent was brought in as needed A phased implementation strategy was
followed, with short-term wins Only after early successes, was the
strategy fully communicated throughout the bank
Incentive and reward systems were changed
The Outcomes at FAC The bank was transformed A shift from “banking by intuition” to
“banking by information and analysis” Profits of over $211 million (US) in 1998 A leader in the financial services industry Won the 1999 Society for Information
Management Award
What Was Learned A strong business vision is more
important than existing in-house IT expertise
Acquire the needed business and technical personnel
Both organizational and technological changes are necessary
Plan for "quick hit" success, and repeated successes
Whirlpool An international manufacturer of
appliances In the early 1990s, several business units
saw the need for integrated data IT saw a data warehouse as a way to
improve the technical infrastructure Sponsorship for the warehouse came from
a senior IT manager, who left shortly after initiating the project
Whirlpool Specific applications were developed
based on the warehouse -- quality, global purchasing, and cost recovery
Users are pleased with the warehouse but it has not dramatically affected how the company is run
Senior management is aware of the warehouse but does not view it strategically
A Question: Why were the returns from data warehousing so much greater at FAC than Whirlpool?
Time savings: for data suppliers
for users
More and better information
Better decisions
Improvement of business processes
Support for the accomplishment of strategic business objectives
easy to measure
hard to measure
local impact
global impact
Forming a Powerful Guiding Coalition
Creating a Vision
Communicating the Vision
Empowering Others to Act on the Vision
Planning for and Creating Short-Term Wins
Consolidating Improvement and Producing Still More Change
Institutionalizing New Approaches
Establishing a Sense of Urgency
What Was Learned Kotter’s theory of organizational
transformation can help explain and predict why some organizations are more successful with their data warehousing efforts
Factors Affecting Data Warehousing Success Data warehouses are claimed to have
high failure rates; hence, the need for research
Most of the current knowledge is anecdotal and based on experiences in a few firms
A research model was developed and data were collected from 111 organizations
Factors Affecting Data Warehousing Success Partial Least Squares (PLS) was used to
test the research model
OrganizationalImplementation Success
Champion
Resources
Management Support
ProjectImplementation Success
TechnicalImplementation Success
DataQuality
SystemQuality
PerceivedNet Benefits
Team Skills
User Participation
Development Technology
Source Systems
R2 =.419
R2 =.435
R2 =.205
R2 =.016
R2 =.128
R2 =.369
.440***
.072
.088
.219***
.271**
.094
.177**
.401***
.138
.169*
.276***
.235**
.071
.177*
.042
.063
.113
.142*
.549***
System SuccessImplementation SuccessImplementation Factors
What Was Learned Many of the traditional IT implementation
factors apply to data warehousing Other factors, however, affect system and
data quality Implementation success factors can be
grouped together for parsimony Findings may be applicable to other
infrastructure projects
Comparing the Research Methods Choose a best practices company The company can be a source of useful
insights and examples A single or multiple case studies can be
used to develop or test theories Positivistic research provides more
generalizable findings but may be weaker for providing new insights
References
Cooper, B.L., H.J. Watson, B.H. Wixom, and D.L. Goodhue, "Data Warehousing Supports Corporate Strategy at First American Corporation," MIS Quarterly, (December, 2000), pp. 547-567.
Haley, B.J., “The Benefits of Data Warehousing at Whirlpool,” Annuals of Cases on Information Technology Applications and Management in Organizations, Hershey, PA, Idea Publishing Group, 1999, pp. 14-25.
Kotter, J.P., “Leading Change: Why Transformation Efforts Fail,” Harvard Business Review, (March/April, 1995), pp. 59-67.
References Watson, H.J., D.L. Goodhue, and B.H.Wixon, “The Benefits
of Data Warehousing: Why Some Organizations Realize Exceptional Benefits,” Information & Management, (forthcoming).
Wixom, B.H. and H.J. Watson, “An Empirical Investigation of the Factors Affecting Data Warehousing Success,” MIS Quarterly, (March, 2001), pp. 1-25.
Danke